Question

One drawback of barter exchange is ______.

Options

• Lack of goods

• Lack of coincidence of wants

• Lack of trust

• Lack of double coincidence of wants

Answer 1

One drawback of barter exchange is lack of double coincidence of wants.

Explanation:-

The functioning of the barter system requires a double coincidence of wants on the part of those who want to exchange goods or services. It is necessary for a person who wishes to trade his good or service to find some other person who is not only willing to buy his good or service but also possesses that good which the former wants. The existence of such a double coincidence of wants is a remote probability. For, it is a very laborious and time-consuming process to find out the person who want each other’s goods.